Table of contents
- The five types of support you need to distinguish
- What happens to an employee’s salary during illness
- How statutory sick pay works
- Private health insurance and daily sickness allowance
- What freelancers and self-employed people should check
- How occupational disability insurance differs from sick pay
- Why the statutory disability pension is a separate question
- How to review your own income protection
- Common questions
- Discuss your income protection in English
If you become too ill to work in Germany, who pays your rent, groceries and other commitments? The answer depends on your employment, health insurance, pension record and any private cover you have arranged.
For an employee, continued salary payments and statutory sick pay can provide support during an illness. Private occupational disability insurance, known as Berufsunfähigkeitsversicherung or BU, serves a different purpose: it can pay an agreed benefit when health problems prevent you from carrying out your occupation under the policy’s conditions.
Understanding the difference helps you check both an interruption lasting a few weeks and an illness that changes your working life.
The five types of support you need to distinguish
| Type of support | What it does | What to check |
|---|---|---|
| Entgeltfortzahlung — continued salary | Your employer continues eligible pay during sickness absence. | Your entitlement and when it ends. |
| Krankengeld — statutory sick pay | Your statutory health insurer replaces part of your income if you qualify. | Eligibility, deductions and the time limit. |
| Krankentagegeld — private daily sickness allowance | An agreed daily payment helps replace income during covered incapacity for work. | The insured amount, start day and conditions for payment ending. |
| BU — private occupational disability insurance | Pays the agreed benefit when the policy’s occupational disability definition is met. | Your actual duties, medical evidence and contract wording. |
| Erwerbsminderungsrente — statutory reduced earning capacity pension | Provides pension benefits if you meet medical and insurance conditions. | Capacity for work on the general labour market and your pension record. |
These benefits have separate eligibility rules. A BU claim does not begin automatically when sick pay ends, and a sick note does not by itself establish entitlement to every benefit in the table.
What happens to an employee’s salary during illness
Employees generally have a statutory right to continued pay for up to six weeks when illness prevents them from working and the legal conditions are met. This entitlement normally begins after four uninterrupted weeks with the employer. It applies to eligible employees with either statutory or private health insurance. Recurring absence caused by the same illness does not automatically create a fresh six-week entitlement each time. German continued-pay law, section 3
Check your employment contract and any applicable collective agreement too: your employer may provide additional support. If you have just started a job, ask your employer and health insurer how the initial period is covered.
Notify your employer promptly when you cannot work and follow the medical certification requirements. An electronic sick note does not replace the need to report your absence. Federal health portal on sickness benefit
How statutory sick pay works
For employees with the relevant statutory health insurance entitlement, Krankengeld usually becomes relevant once continued salary payments end.
The basic employee calculation is 70% of regular gross earnings subject to contributions, capped at 90% of the relevant net earnings. A statutory earnings ceiling also applies. Bonuses and the detailed calculation rules can affect the result. SGB V, section 47
The resulting benefit is not necessarily the amount that reaches your bank account. Pension, unemployment and long-term care insurance contributions may still be deducted. Ask your health insurer for an individual calculation showing the expected payment after deductions. TK’s English guide to sick pay
A simplified example of the income gap
Assume an employee has regular monthly gross pay of €4,000 and net pay of €2,600. These are fictional inputs, not a tax calculation. Assume no bonuses or other calculation adjustments.
| Calculation | Monthly equivalent |
|---|---|
| 70% of €4,000 gross | €2,800 |
| 90% of €2,600 net | €2,340 |
| Lower amount before applicable deductions | €2,340 |
The difference from the assumed normal net salary is already €260 before deductions. If essential monthly spending is €2,500, even the benefit before deductions is €160 below that budget.
Your actual gap depends on your insurer’s calculation and your spending. Use the amount you expect to receive in your bank account when assessing how long your savings would last.
The 78 weeks include the employer’s payment period
For the same illness, statutory sick pay is generally limited to 78 weeks within a three-year period, counted from the start of incapacity. Periods when entitlement is suspended, including continued salary payments, count towards that limit. An additional illness arising during the existing incapacity does not extend it. SGB V, section 48 and TK’s explanation
In a straightforward continuous case with six weeks of employer pay, that normally leaves up to 72 weeks of actual Krankengeld payments. Previous periods of the same illness can affect the remaining entitlement. Ask your fund for your own end date.
Private health insurance and daily sickness allowance
Private cover for medical treatment does not automatically replace lost earnings. If you have private health insurance, check whether Krankentagegeld is included in your arrangements and what it provides. This is separate cover with its own terms. German Insurance Contract Act, section 192
A privately insured employee might, for example, arrange a daily allowance from day 43 to follow six weeks of employer pay. That start day must match the contract and the employee’s circumstances; it is not automatic.
The policy defines covered incapacity, the daily amount and when payments start and stop. The PKV association’s model terms also restrict the total of sickness allowances and other sick pay to the relevant lost net income. These are model conditions; your insurer’s actual terms govern your cover. PKV model terms, sections 1 and 4, German PDF
Review the following together:
- The first day on which your income would fall.
- Your agreed daily allowance and the income used to justify it.
- Your continuing household and insurance costs.
- The definition of incapacity and the rules for returning to work.
- What happens if the illness develops into occupational disability.
For the wider health insurance decision, see the guide to private health insurance in Germany.
What freelancers and self-employed people should check
Self-employed people generally have no employer continuing their salary. Depending on your business and customer contracts, an inability to work can therefore affect income from the outset.
For someone whose main occupation is self-employment, statutory health insurance does not automatically include Krankengeld. Cover can be arranged through an appropriate declaration or optional tariff, subject to the applicable rules. A declaration made during an existing incapacity does not simply create immediate cover for that ongoing absence. SGB V, section 44
Under the usual statutory option, payments start from day 43. Other arrangements can differ. Confirm the start date and calculation with your fund; the employee formula based on a payslip should not simply be applied to business revenue. TK’s English guide for the self-employed
Make two separate budgets: your household spending and the business costs that would continue during an absence. Then identify which resources or contracts would meet each. A personal income-protection plan should not be assumed to cover every business expense.
The separate guide to BU for freelancers in Germany explains the occupational disability side of that assessment.
How occupational disability insurance differs from sick pay
BU focuses on your ability to perform your occupation as it was carried out before the health impairment. The agreed policy determines the benefit and any additional conditions. This differs from simply establishing that you are currently on sick leave. German Insurance Contract Act, section 172
A policy may use a 50% occupational-disability threshold and a prognosis of at least six months. The assessment concerns the work you actually do, and the precise wording matters. For example, an insurer’s published conditions may also address another occupation you actually perform or the possibility of reorganising a self-employed business. Example BU policy conditions, section 2, German PDF
A six-month prognosis is not automatically a six-month waiting period
Where the contract accepts an expected period of disability, you do not necessarily have to wait until those six months have elapsed before a claim can qualify. Some terms also recognise an already completed period retrospectively. The medical prognosis, contractual benefit start and claims decision are distinct matters. Example BU policy wording
Check the policy’s rules on retrospective benefits, notification and any separately agreed deferred period. A potential entitlement is not the same as money already available to pay next month’s bills.
Check the transition between Krankentagegeld and BU
The PKV model terms provide for Krankentagegeld cover to end on occupational disability, with limited continuation in an existing claim. A BU insurer makes its own assessment under a different contract. You should therefore have the definitions and transition provisions checked together. PKV model terms, section 15, German PDF
Do not assume that two policies guarantee uninterrupted payments or that both benefits can always be kept for the same period. If you are already ill, clarify claims and notification requirements under your existing arrangements promptly.
For benefit amounts and the conditions to compare, continue with the guide to occupational disability insurance in Germany.
Why the statutory disability pension is a separate question
The Erwerbsminderungsrente generally assesses your capacity for work on the general labour market, rather than only your previous occupation.
The usual medical thresholds are less than three hours of work a day for full reduced earning capacity, and at least three but less than six hours for partial reduced earning capacity. Other requirements and exceptions apply. Being unable to continue your own profession does not, by itself, establish entitlement. SGB VI, section 43
The standard insurance conditions generally include a five-year qualifying period and three years of compulsory contributions in the five years before reduced earning capacity begins. There are exceptions and rules extending the relevant period. This deserves particular attention if you recently moved to Germany or have gaps in compulsory contributions. Deutsche Rentenversicherung on eligibility
Ask Deutsche Rentenversicherung to assess your actual insurance record, including any relevant history abroad, rather than assuming you are covered or excluded based only on your arrival date.
How to review your own income protection
Start with what you already have. Gather your employment contract, recent income information, health insurance details, pension information and any existing income-protection policies.
Then work through these questions:
- What would still be paid during a short absence? Confirm employer arrangements or, if self-employed, the income your business could maintain.
- What would reach my bank account during a longer illness? Obtain the relevant sickness-benefit estimate or check the insured daily allowance.
- How long could I cover the difference from savings? Include housing, dependants, borrowing and continuing insurance costs.
- What happens if I cannot return to my occupation? Check existing BU benefits, definitions and the end age of cover.
- What changes if my circumstances change? Discuss a move abroad, a different occupation or a move into self-employment before relying on the same arrangements.
If new cover is appropriate, prepare the application carefully. Answer the insurer’s written health and risk questions accurately, using the requested time periods. Incorrect or incomplete disclosure can have consequences for the contract and a later claim. German Insurance Contract Act, section 19
Where health history needs clarification, ask whether an anonymous risk inquiry is appropriate before a formal application. It is a preliminary assessment, not a guarantee of acceptance or insurance cover.
Common questions
Does having health insurance mean my income is fully protected?
No. Medical cover and income replacement have different roles. Check your entitlement to statutory sick pay or your private daily allowance, then assess the effect of a longer loss of occupational ability.
Can I claim BU while I am still receiving sick pay?
A BU claim can become relevant before sick pay ends. Its eligibility test is separate. Whether payments overlap, stop or need to be adjusted depends on the benefits and contracts involved; have the combination checked.
What happens when statutory sick pay runs out?
There is no automatic transfer into BU or a statutory disability pension. Depending on your circumstances, other support such as unemployment benefit may be relevant while longer-term questions are resolved. Contact your health insurer, the employment agency and, where appropriate, Deutsche Rentenversicherung before the end date. Federal health portal on support after sickness benefit
Can I discuss my cover in English if I live outside Berlin?
Yes. Sven offers online insurance consultations in English throughout Germany. In-person appointments in Berlin are available by arrangement.
Discuss your income protection in English
Sven Chalupa offers insurance advice in English, with appointments in Berlin by arrangement and online consultations throughout Germany. You can discuss your existing cover, the income gap you want to address and whether occupational disability insurance fits your situation.
Advice is free. For insurance arranged through Sven, insurers pay commission; insurance premiums and product costs still apply.
Discuss your income protection with Sven
For the initial enquiry, describe your employment situation and your question. Please do not send medical records or other sensitive documents through the general contact form.
General information as of 8 October 2026. Individual entitlements depend on the applicable law, your circumstances and your policy terms.